Chapter 10 - Homework Seved Help Save & Exit Submit Check my work 4 Melji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: 10 points Sales Net operating income Average operating assets Division Osaka Yokohama $ 9,800,000 $ 28,000,000 5 588,000 $ 2,240,000 $ 2,450,000 $ 14,000,000 eBook Hint Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Sales Net operating income Average operating assets Osaka $9,800,000 $ 588,000 $ 2,450,000 Yokohama $ 28,000,000 $ 2,240,000 $ 14,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required ra of return for any division is 14%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Yokohama Osaka % ROI % Roured Required 2 > 3. Is Yokohamas greater Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. Osaka Yokohama Residual income